The company, which owns the Daily Mail and Evening Standard, said circulation revenue fell 1% on the the same period last year amid well-reported difficulties in the market.
However, despite disappointing ad revenue for its national and regional newspapers, with recruitment down 16% and motors down 14% year on year, the group said it "remains on track for a satisfactory year".
The results, covering the first five months to February 2006, reveal digital ad revenue from Associated brands such as Jobsite, Find a Property and Prime Location, rose 43% year on year.
Ad revenue at its TV text service Teletext was badly hit down 19% year on year. There was better news down under at its Australian radio business DMG Radio, which delivered a 20% growth in revenue.
"Although visibility on future advertising performance is very limited, there have been recent signs that the year-on-year decline in advertising revenue may ease in the second half of the financial year," DMGT said.
The news comes as the publisher is in talks with Johnston Press and Newsquest about the £120m sale of its Scottish arm of its regional division Northcliffe Newspapers, which includes the Aberdeen Press & Journal.
Separately it is also reported this morning to be in talks to sell off its south-eastern local newspapers, which include the Kent and Sussex Courier. Newsquest is again said to be interested as is Trinity Mirror.
The two sales come after it pulled the plug on the sale of Northcliffe after bids did not meet its expectations. It had been hoping to get as much as £1.5bn.
DMGT will report first-half figures on April 2.
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